People often prefer Vanguard because of its unique ownership structure: Vanguard is owned by its funds, which are owned by investors, so profits get returned as lower costs rather than paid to outside shareholders.
This “at-cost” model has historically translated into some of the lowest expense ratios in the industry, especially for index funds and ETFs, which appeals to long-term, buy-and-hold investors focused on minimizing fees.
Vanguard also pioneered low-cost index investing, giving it strong brand loyalty among passive investors following strategies like the Bogleheads philosophy.
That said, many investors prefer Fidelity instead, citing its stronger technology platform, better customer service, zero-fee index funds, and more robust research tools. The “better” choice often depends on individual priorities.